First Capital maintains growth momentum
First Capital Holdings PLC recorded a consolidated profit after tax
of Rs. 176 mn for the quarter ended June 30, 2015.
Following the policy rate reductions in April 2015, the company's
structuring and placement arm First Capital Limited, which specialises
in mobilised listed debentures, asset backed securitisations and
commercial papers, generated a fee income of Rs. 27 mn (2014/15 - Rs. 13
mn). While the group's primary dealer First Capital Treasuries Limited
realised a trading gain of Rs. 77 mn for the quarter, capitalising on
prevailing market conditions.
"While we are pleased with our performance to date, we seek to
transform the prevailing macro-economic factors to our favour. The Group
will continue to build on the current growth momentum across all its
subsidiary businesses while expanding on corporate advisory and broader
investment banking services," said CEO Dilshan Wirasekara,
Meanwhile during the first half of the financial year 2015/16, the
group's Wealth Management and Unit Trust, First Capital Asset Management
Limited, reflected a growth of Rs. 2.9 bn, increasing the division's
total assets under management to Rs. 7.1 bn.
With a return of 13.13% for the year ended June 30, 2015, First
Capital Wealth Fund continuing its steady performance.
Consistent with the mixed performance of the Colombo Stock Market, as
foreign participants exited the market due to political uncertainty, the
Stockbroking division First Capital Equities (Pvt) Limited saw lower
trading volumes resulting in lower broking income.
The company divested its 25% stake in Orient Finance PLC resulting in
a capital gain of Rs. 27.5 mn for the quarter.
The investment realized a gain of Rs 260.8 mn, including gains
recorded in the previous financial year amounting to Rs. 233.3 mn.
"The Group will continue to engage actively with customers and use
the leadership position and reputation it has established in the
marketplace to broaden the scope of its fee-based operations.
While primary dealer income will continue to be the strongest
component of profits in the short-term, it is our expectation that fee
income will grow to be a meaningful contributor in the years ahead."
Wirasekara said.
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